Thomas H. Lee Partners Explained

See also: Lee Equity Partners.

Thomas H. Lee Partners, L.P.
Type:Private
Founder:Thomas H. Lee
Location:100 Federal Street
Boston, Massachusetts, United States
Industry:Private equity
Products:Leveraged buyout, growth capital
Aum:$16.9 billion[1]
Num Employees:100+ (2022)

Thomas H. Lee Partners, L.P. is an American private equity firm headquartered in Boston. The firm focuses on investing in middle market growth companies across various sectors, including financial technology, services, healthcare, technology, and business solutions.[2]

History

Thomas H. Lee Partners was founded in 1974 by Thomas H. Lee, often referred to as THL.[3] As of 2022, THL had raised approximately $34 billion of equity capital, investmenting in more than 160 companies. The firm's portfolio includes over 500 add-on acquisitions representing an aggregate enterprise value at acquisition of over $210 billion.[4] In 2022, Private Equity International ranked THL Partners 82nd among the top 300 private equity firms based on funds raised in 2021.[5]

The firm's Management Committee consists of Co-CEOs Todd Abbrecht and Scott Sperling, Chairman Tony DiNovi, and Managing Director Tom Hagerty.[6] The firm's namesake, Thomas H. Lee, left the company and formed Lee Equity Partners in 2006.[7]

Investments

Throughout its history, Thomas H. Lee Partners has raised over $36 billion. The firm has launched various funds, such as:

Other Funds

Notable transactions sponsored by THL include AbacusNext,[8] Aramark,[9] [10] AutoStore,[11] Brooks Automation,[12] Ceridian,[13] CSafe,[14] Dunkin' Brands,[15] Experian,[16] Fidelity National Information Services,[17] FourKites, Hightower Advisors,[18] HomeSide Lending, Houghton Mifflin,[19] Syneos Health,Michael Foods,[20] The Nielsen Company,[21] ProSiebenSat.1, Smile Doctors, Snapple,[22] Warner Chilcott,[23] Warner Music Group,[24] and West Corporation.[25]

Refco

In 2004, THL completed a leveraged buyout acquisition of Refco, a financial services company specializing in commodities and futures contracts, which collapsed suddenly in October 2005 only months after its IPO. Refco's collapse cost investors more than $1 billion and sparked multiple suits for negligence against the firm. THL in turn sued Refco's auditors and former executives claiming they hid the fraud which caused Refco's collapse.[26] THL has since settled all claims by Refco’s brokerage customers, bankruptcy trustee and shareholders.[27]

Art Van Bankruptcy

In March 2020, Art Van Furniture, a furniture retailer owned by THL, filed for Chapter 11 bankruptcy.[28] The company's going-out-of-business sales, approved two days before the filing, had to be suspended due to the onset of the COVID-19 pandemic in the United States. As a debtor-in-possession, Art Van could not prioritize paying employees over other creditors without a court order. To support the affected employees,[29] THL established a 'Hardship Fund' and contributed an initial donation of $1 million. Additionally, THL pledged to match up to another $1 million in outside donations. In March 2021, THL fulfilled its matching commitment, leading to relief payments of approximately $1,200 per former Art Van employee.[30]

Affiliates

THL's past affiliates include:

THL Credit Advisors acquired in 2020 by First Eagle Investment Managed, provided junior debt to middle-market companies seeking capital for growth, acquisition, recapitalization and/or change of control.[31] In July 2020, THL Credit changed its name to First Eagle Alternative Capital BDC, Inc.[32]

TH Lee Putnam Ventures is a technology-focused private equity firm affiliated with THL and Putnam Investments, a leading global money management firm. TH Lee Putnam Ventures manages $1.1 billion in capital commitments and has invested approximately $850 million in more than 43 companies since the firm's formation in 1999.[33]

External links

Notes and References

  1. http://www.peimedia.com/resources/PEI%20300/2012/PEI300_Top50_new.pdf PEI 300 - Top 50
  2. Web site: Thomas H. Lee Partners, L.P.: Private Company Information - Businessweek. https://web.archive.org/web/20070905100340/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=23473 . dead . September 5, 2007 . investing.businessweek.com. 13 August 2012.
  3. http://www.marketwatch.com/news/story/story.aspx?guid={BBAE1593-808F-49B8-B28D-BA97AA567D44} Thomas H. Lee forms new venture: Lee Equity Partners
  4. Web site: Inriver Announces Growth Investment from Thomas H. Lee Partners. May 19, 2022. Bloomberg L.P..
  5. Web site: PEI 300 Top private equity firms. February 2, 2022. Private Equity International.
  6. Web site: TH Lee raising Fund VIII with Todd Abbrecht as first head of PE. December 15, 2017. PE Hub.
  7. http://www.marketwatch.com/story/thomas-h-lee-forms-new-venture-lee-equity-partners Thomas H. Lee forms new venture: Lee Equity Partners
  8. News: Warren . Zach . AbacusNext Announces Sale to New Investor as It Continues Cloud Focus . 9 January 2024 . Legaltech News . Law.com . 11 March 2021 . en.
  9. http://phx.corporate-ir.net/phoenix.zhtml?c=130030&p=irol-newsArticle&ID=954679&highlight=
  10. News: Thomas H. Lee Partners in group acquiring Aramark . 9 January 2024 . www.bizjournals.com . 8 August 2006.
  11. News: SoftBank to take 40% stake in warehouse robotics firm AutoStore for $2.8 bln . 9 January 2024 . Reuters . 5 April 2021.
  12. News: Brooks Automation to sell automation unit for $3 bln, scraps separation plans . 9 January 2024 . 20 September 2021.
  13. News: Beltran . Luisa . THL to make more than 2x on Ceridian HCM IPO . 9 January 2024 . PE Hub . 26 April 2018.
  14. News: Pringle . Sarah . THL's CSafe attracts private equity interest . 9 January 2024 . PE Hub . 19 November 2018.
  15. https://www.nytimes.com/2005/12/13/business/13doughnuts.html?scp=1&sq=%22thomas+H.+lee%22+dunkin&st=nyt Parent of Dunkin' Donuts Sold For $2.4 Billion to Equity Firms
  16. News: Experian Investors Reap Substantial Returns . 9 January 2024 . Los Angeles Times . 15 November 1996.
  17. News: Bills . Steve . THLee In Fourth Deal With William Foley's Fidelity National . 9 January 2024 . Buyouts . 10 June 2013.
  18. News: Kreutzer . Laura . Thomas H. Lee Partners Buys Time With Secondary Deal for Hightower . 9 January 2024 . Wall Street Journal . 3 December 2020.
  19. https://www.nytimes.com/2002/11/01/business/vivendi-confirms-houghton-mifflin-sale.html Vivendi Confirms Houghton Mifflin Sale
  20. http://www.michaelfoods.com/ Michael Foods
  21. News: Davies . Megan . Buyout firm THL writes down $524 million investments: letter . 9 January 2024 . 22 January 2009.
  22. https://query.nytimes.com/gst/fullpage.html?res=9E0CE2D71F3CF930A35757C0A964958260&scp=1&sq=%22thomas+H.+lee%22+snapple&st=nyt Thomas H. Lee In Snapple Deal
  23. News: Gelsi . Steve . Warner Chilcott Deal Promises 4x Return For Sponsors . 9 January 2024 . Buyouts . 28 May 2013.
  24. Marshall . Elizabeth Dilts . Thomas H. Lee, Billionaire Investor Who Helped Acquire Warner Music From Time Warner, Dies at 78 . 9 January 2024 . Billboard . 25 February 2023.
  25. News: Investor Group Buys West Corp. . The New York Times . 9 January 2024 . Reuters . 1 June 2006.
  26. https://dealbook.nytimes.com/2007/08/09/refco-bankruptcy-trustee-sues-thomas-h-lee-partners/ Refco bankruptcy trustee sues Thomas H. Lee Partners
  27. Web site: Susan. Beck. 4 March 2011. Thomas H. Lee Reaches $145 Million Settlement with Refco Trustee and Brokerage Customers. 2021-02-17. The American Lawyer. en.
  28. Web site: Reindl. JC. 2020-03-05. Art Van Furniture to close its stores, begin liquidation sales. 2020-03-05. Detroit Free Press. en.
  29. News: 2021-02-10 . Bankruptcy Claimed Their Jobs, and Now They're Out for Payback . en . Bloomberg.com . 2021-02-17.
  30. Web site: Ex-Art Van manager on company's bankruptcy, closure. March 16, 2021. Detroit Free Press.
  31. http://www.thlcredit.com/ THL Credit
  32. Web site: THL Credit Rebrands as First Eagle Alternative Capital BDC. July 24, 2020. ABFJournal.
  33. http://www.thlpv.com/ TH Lee

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Thomas H. Lee Partners".

Except where otherwise indicated, Everything.Explained.Today is © Copyright 2009-2024, A B Cryer, All Rights Reserved. Cookie policy.